EC World Reit proposes debt repayment plan, seeks deferment
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The mandatory repayment due by Dec 31 represents some 25 per cent of the Reit’s outstanding onshore and offshore loans.
PHOTO: EC WORLD REIT
Renald Yeo
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SINGAPORE – The manager of EC World Real Estate Investment Trust (Reit) is currently in discussions over a proposed debt repayment plan for existing onshore and offshore bank loans.
The Reit may risk defaulting on its loan obligations should the manager and its lenders fail to come to an agreement by Dec 31, 2022, it was announced in a bourse filing on Monday.
Under the proposed debt repayment plan, EC World Reit’s sponsor will finance part of a mandatory repayment due by Dec 31, with the remainder deferred to the first quarter of 2023.
The Dec 31 payment represents some 25 per cent of the Reit’s outstanding onshore and offshore loans.
The latest proposal is on the back of continued delays to divestment plans for two Chinese logistics assets, to the tune of some 2.03 billion yuan (S$392 million). Part of the divestment proceeds were earmarked for the Reit to repay its outstanding loans.
EC World Reit’s manager said the delay in completing the divestment was due to the ongoing Covid-19 situation in China.
“The lenders are in the process of obtaining the relevant internal approval for the repayment plan,” said the Reit manager in the filing.
“The manager expects an outcome by Dec 31, 2022, and will update unit holders with the details relating to the repayment plan in due course.”
Units of EC World Reit closed at 46 cents, up 1.1 per cent, on Tuesday. THE BUSINESS TIMES
